Recently, Caliber hosted a Home Possible® webinar.

Dec 16, 2021

As outlined during the discussion, our Caliber Wholesale direct partnership with Freddie Mac offers our Caliber Club the ability to accommodate borrowers in a wide range of life stages, offer enhanced credit flexibilities to meet the needs of diverse individual borrower situations and capitalize on a low 3% down payment solution.

During the webinar, our Broker attendees submitted 50 different questions. These questions have been addressed by Freddie Mac and have been made available to you as a learning resource.

In the event you weren’t able to make the call, a few extremely useful items mentioned during the call include:

Home Possible^® Income and Property Eligibility Tool

Down Payment Resource

Also, a copy of the recording can be found here:

To stay in the loop on upcoming trainings click here.

If you would like to view the questions and answers from the webinar, please see below:

Q&As from webinar

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Can you do an NCO HP refinance for a property that is NOT a PR?

NCO HP Primary refinances can be done for primary residences only.

Is the co-borrower's income included in the calculation for the 80% of the qualifying income?

Any income used as qualifying income for debt ratio purposes must be included in the AMI calculation.

For 3-4 unit, can rental income be used to qualify?

Follow the standard guide. No Home Possible overlays.

Do we have to include rental income towards income?

We don't force the borrower to use any source of income. However, any income used as qualifying income for debt ratio purposes must be included in the AMI calculation.

Do we need to include the rental income on multifamily homes toward income limits? Same with non-owner occupants, do we need to include their income towards income limits? This is my biggest problem since Freddie went to 80% AMI instead of 100% in certain areas.

Any income used as qualifying income for debt ratio purposes must be included in the AMI calculation (Including rental income).

When running LP, do we need to do anything special to show it is a Home Possible program?

The only thing you need to do is select the Home Possible identifier.

Do the income limits apply to just the borrower or also household income (All residence)?

Any income used as qualifying income for debt ratio purposes must be included in the AMI calculation.

With the non-occupant co-borrower scenario, is the AMI income limited only for Occupying Borrower Qualifying income? Or do you also have to include the non-Occupant qualifying income?

Any income used as qualifying income for debt ratio purposes must be included in the AMI calculation.

On a 2 unit 95% LTV, if the borrower needs to count the Rental income of 75% of One of the Units, (for example, if one of the units will rent for $1000 and $750 rental income from subject is used to qualify), is the $750 rental income added to the AMI income limit test? Or is the $750 income used to offset PITI payment?

Any income used as qualifying income for debt ratio purposes must be included in the AMI calculation (Including rental income).

What if they don't want to use Overtime for qualifying?

We don't force the borrower to use any source of income. However, any income used as qualifying income for debt ratio purposes must be included in the AMI calculation.

Are spousal and child support considered an income?

If it is being used as qualifying income, we would consider it income.

What is the maximum DTI allowed?

Home Possible is run through LPA and it will determine if the DTI is acceptable.

If you have a non-occupant coborrower, does their income have any impact on the income limits?

We don't force the borrower to use any source of income. However, any income used as qualifying income for debt ratio purposes must be included in the AMI calculation.

Is the Area Median Income just the income per borrower or for the household (Specifically for borrowers that will have both husband and wife on the loan)?

The AMI is based on the income used as qualifying income for debt ratio purposes. This is not household income.

When does median income get reviewed for possible income increases? Will you eventually go back to 100% of the median income for qualifying purposes?

This is controlled by our regulator. We don't have this information.

Does Caliber offer any Home Possible specific marketing materials in Caliber Pro?

Yes, there are a variety of Home Possible assets available in CaliberProShop.com. Contact your Account Executive for login credentials.

The statistic on 65+ age does not go very far out, only 2025. Do you have a longer-term projection? What does that market look like moving forward?

Our research shows the impact of 65+ until the year 2025 due to the lack of inventory impact and their impact in competing with millennial FTHB's.

Will the slide be sent out to participants?

We will send via email and post to our website.

How do we get a log on for the Freddie Mac website?

How Do I Sign Up for Webinars & Tutorials (freddiemac.com)

What is the max DTI allowed?

Home Possible is run through LPA and it will determine if the DTI is acceptable.

Can you exclude social security income?

We don't force the borrower to use any source of income. However, any income used as qualifying income for debt ratio purposes must be included in the AMI calculation.

Can there be a Co-Signer instead of a Co-Borrower?

Yes

What is the credit score needed?

Home Possible is run through LPA and it will determine if the FICO score is acceptable.

Income can't be over 80%, but is there a minimum? Can it be below 50%?

Yes, it can be below 50%.

If the borrower has base plus commission income, they cannot use the commission income to qualify? Even if over 2 years?

We don't force the borrower to use any source of income. However, any income used as qualifying income for debt ratio purposes must be included in the AMI calculation.

What is the FICO score needed?

Home Possible is run through LPA and it will determine if the FICO score is acceptable.

Can borrower use a portion of base income as QMI? In other words, if 2/3 of monthly base is all that's needed, can they input just 2/3 of base?

You can't "mis-calculate" a source of income lower to qualify. You need to qualify with the correct calculation.

If there is a non-occupied borrower, does the down payment go up to 5% or can you still do 3%?

See page 17 on the presentation for these requirements. Maximum LTV is 95%/105% TLTV with an Affordable Second.

Is there a tool, on the website, to calculate accurate MI?

Exhibit 19 in our guide will have that information.

What is the link for look up?

Home Possible Eligibility Map - Freddie Mac Single-Family

What is the credit score needed for the program?

Home Possible is run through LPA and it will determine if the FICO score is acceptable.

Does the map tool have a way of searching for areas that have no maximum income limits?

We currently don’t have areas with no maximum income limits.

Maximum # of financed properties?

Follow the standard guide. No Home Possible overlays.

Any idea when the income limits will be updated for 2022?

This is controlled by our regulator. We don't have this information.

You can't use a "portion" of wages, but you can exclude SS income?

We don't force the borrower to use any source of income. However, any income used as qualifying income for debt ratio purposes must be included in the AMI calculation. That source of income must be calculated correctly.

What about rental income, does that count towards the limit?

Any income used as qualifying income for debt ratio purposes must be included in the AMI calculation (Including rental income).

If I am using rental income to qualify from the subject property, does that go towards income limit calculations?

Any income used as qualifying income for debt ratio purposes must be included in the AMI calculation (Including rental income).

Could you elaborate on Down Payment Assistance programs? Are these loans? Grants?

These links will help you with what we are talking about with an affordable second: https://sf.freddiemac.com/content/_assets/resources/pdf/fact-sheet/affordable_seconds_guidelines_factsheet.pdf

Are there minimum FICO score requirements for Home Possible?

Home Possible is run through LPA and it will determine if the FICO score is acceptable.

Are there any restrictions on using rents to qualify on 3 to 4 unit properties (FTHB no landlord history)?

Follow the standard guide. No Home Possible overlays.

When will the median income be revised for 2022?

This is controlled by our regulator. We don't have this information.